Daibochi Plastic & Packaging Industry Berhad

Investors Briefing 1H11 Financial Results & Corporate Update 9 August 2011
IR Adviser

AQUILAS

1H11 Operational Highlights 1H11 Financial Review 2H11 Prospects and Plans

1H11 Operational Highlights

Packaging segment expanded further while property division recognized more sales

1H11 Operational Highlights

2Q11 revenue increased 20%, attributable equally to packaging and property segments
Packaging segment sales increased by RM5.8 mil or 9.6% to RM67.0 mil (2Q10: RM61.2 mil) Property segment contributed RM6.2 mil (2Q10: nil)

Fluctuating raw material prices in 2Q11, but stable trend for the time being
Sharp spike in raw material prices (resin, solvent and ink) in April 2011 eased off in May June 2011, from resumption of supply chain after Japan earthquake PET prices stabilized in 1Q11, but PE, PP and OPP resumed uptrend 2Q11 net profit increased to RM5.0 mil (2Q10: 4.2 mil)

Revenue CAGR (FY04 to FY10): 8.9%

PBT CAGR (04-10): 32.2% PATMI CAGR (04-10): 35.8%

1H11 Financial Review

Margins compressed by higher costs 2H to be better from positive demand & firmer prices

1H11 Income Statement

2Q11 to 30.6.11 73.19 8.46 7.06 (0.13) 6.62 4.98 6.64 11.6% 9.0% 6.8%

2Q10 to 30.6.10 61.17 7.90 5.95 (0.01) 5.71 4.19 5.59 12.9% 9.3% 6.8%

Change vs previous qtr

RM'mil Revenue EBITDA Operating Profit Share of Associates Pre-tax Profit Basic EPS (sen) EBITDA margin PBT margin Net margin

1H11 to 30.6.11 140.86 16.33 13.34 (0.23) 12.51 9.62 12.84 11.6% 8.9% 6.8%

1H10 to 30.6.10 120.86 16.12 12.56 (0.10) 12.06 9.21 12.28 13.3% 10.0% 7.6%

Change vs previous qtr

19.6% 7.1% 18.7% n.m. 16.0% 18.8% (1.4) (0.3) (0.1)

16.5% 1.3% 6.2% n.m. 3.7% 4.5% 4.6% (1.7) (1.1) (0.8)

18.8% Net Profit to Shareholders

1H11 margin compression from higher cost of raw materials compared to 1H10

Quarterly Revenue (RM mil)

80.0 60.0

Quarterly PATMI (RM mil) 8.0

+19.6%

+18.8%
6.0 4.0

55.8

57.6

53.8

54.6

59.7

61.2

71.4

75.5

67.7

73.2

5.0

5.8

5.9

6.1

5.0

4.2

4.8

4.2

4.6

20.0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

0.0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

5.0

40.0

2.0

1H11 Balance Sheet (Highlights)

Capacity expansion during 1H11, with RM4 million investment in new printing machine
RM mil As at 30.6.11
(Unaudited)

As at 31.12.10
(Audited)

Fixed assets (excl associate investment) Associate investment Current assets Current liabilities Shareholders equity Total borrowings Cash & Bank Balances Net gearing Return on Average Shareholders Equity Return on Average Total Assets

71.08 22.85 127.00 70.49 136.80 39.59 13.22 0.19 x 14.4%* 8.9%*

66.21 23.08 122.72 69.26 131.47 29.53 6.30 0.18 x 14.3% 9.1% Higher borrowings to finance higher working capital from larger volume of sales orders Additional printing machine commissioned in 2Q11

2nd

interim tax exempt dividend of 3.5 sen/share payable on 14 September 2011, translating to 51% payout
Dividend Payout
Dividend Payout (RM 'mil) Payout Ratio

RM mil

%
100.0% 75.0% 50.0% 25.0%

Dividend History

12.00

73.8%
9.00 6.00 3.00 0.00
sen

52.3%

55.9%

52.4%

55.8%

51.3%

51.6%

50.7%

1.52
2004

1.52
2005

3.04
2006

4.55
2007

4.55
2008

11.67
2009

9.38
2010

4.88
1H11

0.0%

Dividend Payout (sen)

16.0 12.0 8.0 4.0 0.0 2.0 2004 2.0 2005 4.0 2006 6.0 2007 6.0 2008 15.5 2009 12.5 2010 6.5 1H11

2H PROSPECTS AND PLANS

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Continuing to work on new ventures and customers

Growth Strategies

Expanding scope for existing customers Increasing MNC clientele Making progress on new ventures

Exploring innovative packaging with clients

Actively seeking potential customers across the region

Adhering to pre-qualification stages for ESD packaging; targeting initial contributions in FY2012

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THANK YOU
Bursa: DAIBOCI/8125 Bloomberg: DPP:MK
IR Contacts: Thomas Lim Julia Pong

Reuters: DPPM.KL

E: tomlim@daibochiplastic.com E: julia@aquilas.com.my

T: 06-231 9779 T: 012-3909 258

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APPENDIX

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CORPORATE PROFILE

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Daibochi, a resilient investment case

The LARGEST supplier of

packaging in SEA

Track Record

The SOLE supplier to Factory in Msia Supplier of >90% of The SOLE supplier of Kraft / Other important customers:

Chembong Confectionery

s flexible packaging in Msia biscuits in Msia

Listed since 1990, now on Main Market of Bursa Msia Market cap of RM212.5 mil (9.5.11) Dividend policy of paying minimum 50% of net profit to shareholders

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Listed since 1990

Corporate Information

DAIBOCHI PLASTIC & PACKAGING INDUSTRY BERHAD

Listed Sector Main Market, Bursa Malaysia since 1990 (Transferred from Second Board in 2003) Industrial Products Bursa: 8125 / DAIBOCI Bloomberg: DPP:MK Reuters: DPPM.KL RM75.9 mil (75.902 mil shares of RM1 each) RM219.36 mil (RM2.89 as at 1 Aug 2011)

Codes

Share Capital Market Capitalization

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Leading flexible packaging solutions provider, with enviable reputation exceeding 35 years
2010 Obtained Letter of Validation from USA for electronic packaging 2009 - Acquired 9th printing machine; Obtained HALAL Certification; Regional supplier for BAT

Corporate Profile

2008 Acquired wide web polypropylene film making machine 2007 - Received Gold Award for the Colorpak Packaging Export Award at Australian Packaging Awards 2004 Acquired Msias 1st 5-layer-blown film machine to produce transparent barrier films 2003 Transfer to Main Board (now Main Market); Accredited with HACCP 2002 Acquired metallizer with Plasma Tech to produce high-barrier films; Regional Supplier to Nestle in SEA 2001 Incorporated Australian subsidiary; Accredited with ISO:9001 1999 Supplier to Nestle Msia 1996 - Moved to current premises with >325,000 sq ft built-up area 1994 Acquired fastest extrusion laminator in SEA 1990 Acquired metallizer to produce in-house metalized films; Listed on 2nd Board of KLSE (Bursa Msia) 1987 Acquired polypropylene film-making machine to produce in-house films 1984 Started in-house printing cylinder making 1972 Established in Melaka with 10,000 sq ft plant; Moved to larger premises with 165,527 sq ft

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Internationally-certified production facilities that comply with all factory audits by our MNC clientele

Corporate Profile (cont) (cont)

Accredited and world-class worldproduction facilities

Attained ISO:9001 certification Hazard Analysis Critical Control Points (HACCP) compliant to ensure adherence to food safety requirements Obtained HALAL certification

Well-equipped laboratory testing Wellfacilities

To ensure our products exceed customers packaging barrier (MVTR ASTM F1249, O2TR ASTM D3895-35), retention (GC with Headspace) and migration (COF ASTM D1894) requirements.

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Integrated end-to-end packaging process equipped with specialized in-house capabilities

Production Facilities

The only player with in-house cylinder-making, and one of the few with metallizing and sealing capabilities for quality assurance and constant improvement at key stages

In-house capabilities

Up to 9-colour 2-sided printing

Solvent-based/free

Capabilities incl Standing Pouch

Prepress

Cylinder Making CPP Film

Gravure Printing Metallizer

Lamination (Extrusion / Dry)

Slitting / Bagging

Polypropylene sealing films

To build high barriers

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Wide range of packaging solutions for various product functions Constantly innovating for changing requirements
Film Type Applications / Use

Daibochi Products

High Permeability Barrier / Performance Cost Effective Barrier

Coffee, Nuts, Potato Chips Snacks, Biscuits, Wafer, Chocolate, Cakes Outer Pack, Noodles, Biscuits, Wafers Labelling, Ice-cream, Frozen Food, Cereal Peel Seal, Seasoning Oil, Powder / Liquid Detergent, Shower Foam, Tobacco, Pet food

General Packaging Specialty Application

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Diversified clientele of leading brands

Customer Base
Food

Beverage

FMCG

Specialty

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Experienced management with industry expertise

Thomas Lim Soo Koon, Managing Director

Key Management

- Holds a degree in Bachelor of Science Industrial Engineering and Management from Oklahoma State University, & Master of Business Administration degree from Oklahoma State University. - Joined Daibochi in 1995, and was appointed as Managing Director in February 2005. - Played a key role in building Groups MNC clientele.

Datuk Wong Soon Lim, Executive Director

- An accountant by training and a member of the Malaysian Association of the Institute of Chartered Secretaries and Administrators. - Has an extensive experience and knowledge in the field of accounting, finance, consultancy, corporate finance, manufacturing and property development. Instrumental in listing of the Company.

Low Chan Tian, Executive Director

- Holds a degree in Bachelor of Engineering from the University of Western Australia. - Has wide experience in manufacturing, property development, business and finance.

Low Jin Wei, Executive Director

- Holds a degree in Bachelor of Commerce (Major in Finance & Marketing) from University of Sydney, NSW, Australia. - Prior to this, Mr. Low was the Managing Director / Project Director of GlassKote (Malaysia) Sdn Bhd from 2005 to September 2010.

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Growing institutional following Free float retained at >50%

Major Shareholders

No. of shares (mil)

(30.6.2011)

Percentage * 8.9% 6.5%

Low Chan Tian, ED Datuk Wong Soon Lim, ED

6.69 4.93

* Excluding 439,800 shares bought back by the Company and retained as treasury shares

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INDUSTRY INSIGHT

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Flexible packaging perceived as the environmentally-friendly alternative poised to tap into large market potential
Environmental concerns allayed with flexible packaging
The greener alternative compared to rigid packaging

Industry Insight

Flexible packaging market, worth $1.41 bil in 2008, estimated to reach $2.22 bil in 2015* 2015
Robust growth in food processing sector Rising demand for food exports, i.e. higher food safety concerns Increasing affluence of urban population who favour packaged food

Evident trend of flexible packaging gradually replacing rigid packaging

Similar functions achieved with lower cost and greater flexibility; e.g. Stand-up pouches and re-closable packs offer merchandizing advantages to FMCG players Consumes ~17% less energy compared to rigid packaging, reducing transportation costs.

Source: Southeast Asia Plastic Flexible Packaging Market for Food, Frost & Sullivan, May 2009. Countries covered were Thailand, Indonesia, Malaysia, the Philippines, and Singapore

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